Bill Text: IA SSB1078 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for an act relating to probate and estate=related laws, including the deduction of administrative expenses on the Iowa fiduciary income tax return, the Iowa inheritance tax, liability of beneficiaries of payable=on=death accounts or transfer=on=death securities accounts, fiduciaries' right to property and information, and the surviving spouse's elective share.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-03-03 - 8:45AM; Senate Lobbyist Lounge Judiciary. [SSB1078 Detail]
Download: Iowa-2015-SSB1078-Introduced.html
Senate
Study
Bill
1078
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
SODDERS)
A
BILL
FOR
An
Act
relating
to
probate
and
estate-related
laws,
including
1
the
deduction
of
administrative
expenses
on
the
Iowa
2
fiduciary
income
tax
return,
the
Iowa
inheritance
tax,
3
liability
of
beneficiaries
of
payable-on-death
accounts
or
4
transfer-on-death
securities
accounts,
fiduciaries’
right
5
to
property
and
information,
and
the
surviving
spouse’s
6
elective
share.
7
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
8
TLSB
1061SC
(11)
86
jh/rj
S.F.
_____
DIVISION
I
1
FIDUCIARY
INCOME
TAX
2
Section
1.
Section
422.7,
Code
2015,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
57.
On
the
Iowa
fiduciary
income
tax
5
return,
subtract
the
amount
of
administrative
expenses
that
6
were
not
taken
or
allowed
as
a
deduction
in
calculating
net
7
income
for
federal
fiduciary
income
tax
purposes.
8
DIVISION
II
9
INHERITANCE
TAX
10
Sec.
2.
Section
450.9,
Code
2015,
is
amended
to
read
as
11
follows:
12
450.9
Individual
exemptions.
13
In
computing
the
tax
on
the
net
estate,
the
entire
14
amount
of
property,
interest
in
property,
and
income
15
passing
to
the
surviving
spouse,
and
parents,
grandparents,
16
great-grandparents,
and
other
lineal
ascendants,
children
17
including
legally
adopted
children
and
biological
children
18
entitled
to
inherit
under
the
laws
of
this
state,
stepchildren,
19
and
grandchildren,
great-grandchildren,
and
other
lineal
20
descendants
,
and
stepchildren
and
their
lineal
descendants
are
21
exempt
from
tax.
“Lineal
descendants”
includes
descendants
by
22
adoption.
23
DIVISION
III
24
PAY-ON-DEATH
ACCOUNTS
AND
TRANSFER-ON-DEATH
SECURITIES
25
Sec.
3.
Section
524.805,
subsection
8,
Code
2015,
is
amended
26
to
read
as
follows:
27
8.
A
state
bank
may
receive
deposits
from
one
or
more
28
persons
with
the
provision
that
upon
the
death
of
the
29
depositors
the
deposit
account
shall
be
the
property
of
the
30
person
or
persons
designated
by
the
deceased
depositors
as
31
shown
on
the
deposit
account
records
of
the
state
bank.
32
a.
After
payment
by
the
state
bank,
the
proceeds
shall
33
remain
subject
to
the
debts
of
the
decedent
and
the
payment
of
34
Iowa
inheritance
tax,
if
any
and
charges,
as
each
are
defined
35
-1-
LSB
1061SC
(11)
86
jh/rj
1/
12
S.F.
_____
in
section
633.3,
of
the
decedent’s
estate,
including
statutory
1
support
allowances
to
the
surviving
spouse
and
children
.
A
2
state
bank
paying
the
person
or
persons
designated
shall
not
be
3
liable
as
a
result
of
that
action
for
any
debts
of
the
decedent
4
or
for
any
estate,
inheritance,
or
succession
taxes
which
may
5
be
due
this
state.
6
b.
A
proceeding
against
a
designee
of
the
deceased
depositor
7
to
assert
liability
for
debts
and
charges
may
be
commenced
8
by
the
personal
representative
on
behalf
of
the
deceased
9
depositor’s
estate,
surviving
spouse,
child,
or
creditor.
An
10
action
to
assert
such
liability
must
be
commenced
within
one
11
year
after
the
appointment
of
the
personal
representative
of
12
the
deceased
depositor’s
estate.
In
the
petition
to
initiate
13
such
proceedings,
the
personal
representative
shall
state
all
14
of
the
following:
15
(1)
The
funds
are
needed
for
an
allowable
purpose
under
this
16
section.
17
(2)
The
personal
representative
is
not
aware
of
any
other
18
asset
which
could
be
used
to
pay
such
expenses.
19
(3)
The
personal
representative
has
joined
all
reasonably
20
ascertainable
designees
of
the
deceased
depositor
who
succeeded
21
to
the
deceased
depositor’s
funds
as
parties
in
the
proceedings
22
initiated
under
this
section,
and
has
requested
such
designees
23
provide
the
funds
to
the
personal
representative
in
the
same
24
pro
rata
share
to
which
such
designees
received
the
deceased
25
depositor’s
funds
under
this
section.
26
(4)
The
personal
representative
has
requested
that
this
27
matter
be
set
for
hearing
and
that
the
court
prescribe
the
28
manner
of
service
of
notice
of
such
hearing
to
all
reasonably
29
ascertainable
designees
of
the
deceased
depositor
who
succeeded
30
to
the
deceased
depositor’s
funds
under
this
section.
31
(5)
The
personal
representative
will
provide
an
accounting
32
to
all
designees
of
the
deceased
depositor
joined
in
the
33
proceedings
which
shows
that
the
funds
were
used
for
allowable
34
purposes
under
this
section.
35
-2-
LSB
1061SC
(11)
86
jh/rj
2/
12
S.F.
_____
(6)
The
personal
representative
will
return
any
funds
which
1
were
not
used
for
allowable
purposes
under
this
section
in
pro
2
rata
amounts
to
the
parties
who
provide
funds
to
the
personal
3
representative
pursuant
to
proceedings
initiated
under
this
4
section.
5
c.
A
designee
of
the
deceased
depositor
against
whom
a
6
proceeding
is
brought
under
this
section
may
elect
to
transfer
7
the
funds
received
from
the
deceased
depositor’s
account
to
the
8
personal
representative.
The
transfer
fully
discharges
the
9
designee
of
the
deceased
depositor
from
all
liability
under
10
this
section.
11
d.
A
designee
of
the
deceased
depositor
against
whom
a
12
proceeding
for
an
accounting
is
brought
may
join
as
a
party
to
13
the
proceeding
a
designee
of
any
other
payable-on-death
account
14
of
the
deceased
depositor
under
this
section
or
a
beneficiary
15
of
any
transfer-on-death
security
account
of
the
deceased
16
depositor
under
section
633D.8.
17
e.
Amounts
recovered
by
the
personal
representative
18
pursuant
to
proceedings
initiated
under
this
section
shall
be
19
administered
as
a
part
of
the
deceased
depositor’s
estate.
20
f.
In
actions
brought
under
this
section,
where
the
deceased
21
depositor
was
domiciled
in
Iowa,
the
laws
of
Iowa
shall
apply.
22
Sec.
4.
Section
633D.8,
Code
2015,
is
amended
to
read
as
23
follows:
24
633D.8
Claims
against
a
beneficiary
of
a
transfer
on
death
25
security
registration.
26
1.
If
other
assets
of
the
estate
of
a
deceased
owner
are
27
insufficient
to
pay
debts
and
charges
,
taxes,
and
expenses
of
28
administration
as
each
are
defined
in
section
633.3
,
including
29
statutory
support
allowances
to
the
surviving
spouse
and
30
children,
a
transfer
at
death
of
a
security
registered
in
31
beneficiary
form
is
not
effective
against
the
estate
of
the
32
deceased
sole
owner,
or
if
multiple
owners,
against
the
estate
33
of
the
last
owner
to
die,
to
the
extent
needed
to
pay
debts
,
34
taxes,
and
expenses
of
administration
and
charges
,
including
35
-3-
LSB
1061SC
(11)
86
jh/rj
3/
12
S.F.
_____
statutory
support
allowances
to
the
surviving
spouse
and
1
children.
2
2.
A
beneficiary
of
a
transfer
on
death
transfer-on-death
3
security
registration
under
this
chapter
is
liable
to
account
4
to
the
personal
representative
of
the
deceased
owner
for
the
5
value
of
the
security
as
of
the
time
of
the
deceased
owner’s
6
death
to
the
extent
necessary
to
discharge
debts
,
taxes,
and
7
expenses
of
administration
and
charges
,
including
statutory
8
support
allowances
to
the
surviving
spouse
and
children.
A
9
proceeding
against
a
beneficiary
to
assert
liability
shall
10
not
may
be
commenced
unless
by
the
personal
representative
11
has
received
a
written
demand
by
the
on
behalf
of
the
estate,
12
surviving
spouse,
a
creditor,
a
child,
or
a
person
acting
for
a
13
minor
child
creditor
of
the
deceased
owner.
In
the
petition
to
14
initiate
such
proceedings,
the
personal
representative
shall
15
state
all
of
the
following:
16
a.
The
funds
are
needed
for
an
allowable
purpose
under
this
17
section.
18
b.
The
personal
representative
is
not
aware
of
any
other
19
asset
which
could
be
used
to
pay
such
expenses.
20
c.
The
personal
representative
has
joined
all
reasonably
21
ascertainable
beneficiaries
who
succeeded
to
the
deceased
22
owner’s
funds
as
parties
in
the
proceedings
initiated
under
23
this
section,
and
has
requested
the
beneficiaries
provide
the
24
funds
to
the
personal
representative
in
the
same
pro
rata
share
25
to
which
the
beneficiaries
received
the
deceased
owner’s
funds
26
under
this
chapter.
27
d.
The
personal
representative
has
requested
that
this
28
matter
be
set
for
hearing
and
that
the
court
prescribe
the
29
manner
of
service
of
notice
of
such
hearing
to
all
reasonably
30
ascertainable
beneficiaries
who
succeeded
to
the
deceased
31
owner’s
funds
under
this
chapter.
32
e.
The
personal
representative
will
provide
an
accounting
to
33
all
beneficiaries
joined
in
the
proceedings
which
shows
that
34
the
funds
were
used
for
allowable
purposes
under
this
section.
35
-4-
LSB
1061SC
(11)
86
jh/rj
4/
12
S.F.
_____
f.
The
personal
representative
will
return
any
funds
which
1
were
not
used
for
allowable
purposes
under
this
section
in
pro
2
rata
amounts
to
the
parties
who
provide
funds
to
the
personal
3
representative
pursuant
to
proceedings
initiated
under
this
4
section.
5
3.
An
action
for
an
accounting
under
this
section
must
be
6
commenced
within
two
years
one
year
after
the
death
of
the
7
owner
date
of
appointment
of
the
personal
representative
of
the
8
deceased
owner’s
estate
.
9
4.
A
beneficiary
against
whom
a
proceeding
is
brought
may
10
elect
to
transfer
to
the
personal
representative
the
security
11
registered
in
the
name
of
the
beneficiary
if
the
beneficiary
12
still
owns
the
security,
or
the
net
proceeds
received
by
13
the
beneficiary
upon
disposition
of
the
security
by
the
14
beneficiary.
Such
transfer
fully
discharges
the
beneficiary
15
from
all
liability
under
this
section
.
16
5.
A
beneficiary
against
whom
a
proceeding
for
an
accounting
17
is
brought
may
join
as
a
party
to
the
proceeding
a
beneficiary
18
of
any
other
security
registered
in
beneficiary
form
by
the
19
deceased
owner
or
a
designee
of
any
depository
account
in
a
20
state
bank
held
in
payable-on-death
ownership
by
the
deceased
21
owner
under
section
524.805,
subsection
8
.
22
6.
Amounts
recovered
by
the
personal
representative
with
23
respect
to
a
security
shall
be
administered
as
part
of
the
24
deceased
owner’s
estate.
25
7.
A
district
court
in
this
state
shall
have
subject
matter
26
jurisdiction
over
a
claim
proceeding
against
a
designated
27
beneficiary
brought
by
the
decedent’s
deceased
owner’s
28
personal
representative
or
by
a
claimant
to
an
interest
in
a
29
security
registered
under
this
chapter
.
Any
provision
in
a
30
security
registration
form
restricting
jurisdiction
over
a
31
claim
proceeding
,
or
restricting
a
choice
of
forum,
to
a
forum
32
outside
this
state
is
void.
33
8.
In
an
action
for
an
accounting
brought
under
this
34
section
,
where
the
deceased
owner
was
domiciled
in
this
state,
35
-5-
LSB
1061SC
(11)
86
jh/rj
5/
12
S.F.
_____
the
laws
of
this
state
shall
apply.
1
DIVISION
IV
2
FIDUCIARY
WRITTEN
REQUESTS
3
Sec.
5.
Section
633.78,
Code
2015,
is
amended
by
striking
4
the
section
and
inserting
in
lieu
thereof
the
following:
5
633.78
Fiduciary
written
request
and
third-party
protection.
6
1.
A
fiduciary
under
this
chapter
may
present
a
written
7
request
to
any
person
for
the
purpose
of
obtaining
property
8
owned
by
a
decedent
or
by
a
ward
of
a
conservatorship
for
9
which
the
fiduciary
has
been
appointed,
or
property
to
which
10
a
decedent
or
ward
is
entitled,
or
for
information
about
such
11
property
needed
to
perform
the
fiduciary’s
duties.
The
request
12
must
contain
statements
confirming
all
of
the
following:
13
a.
The
fiduciary’s
authority
has
not
been
revoked,
modified,
14
or
amended
in
any
manner
which
would
cause
the
representations
15
in
the
request
to
be
incorrect.
16
b.
The
request
has
been
signed
by
all
fiduciaries
acting
on
17
behalf
of
the
decedent
or
ward.
18
c.
The
request
has
been
sworn
and
subscribed
to
under
19
penalty
of
perjury
before
a
notary
public
as
provided
in
20
chapter
9B.
21
d.
A
photocopy
of
the
fiduciary’s
letters
of
appointment
is
22
being
provided
with
the
request.
23
2.
A
person
to
whom
a
request
is
presented
under
this
24
section
may
require
that
the
fiduciary
presenting
the
request
25
provide
proof
of
the
fiduciary’s
identity.
26
3.
A
person
who
in
good
faith
provides
the
property
or
27
information
a
fiduciary
requests
under
this
section,
after
28
taking
reasonable
steps
to
verify
the
identity
of
the
fiduciary
29
and
who
has
no
knowledge
that
the
representations
contained
in
30
the
request
are
incorrect,
shall
not
be
liable
to
any
person
31
for
so
acting
and
may
assume
without
inquiry
the
existence
of
32
the
facts
contained
in
the
request.
The
period
of
time
to
33
verify
the
fiduciary’s
authority
shall
not
exceed
ten
business
34
days
from
the
date
the
person
received
the
request.
Any
right
35
-6-
LSB
1061SC
(11)
86
jh/rj
6/
12
S.F.
_____
or
title
acquired
from
the
fiduciary
in
consideration
of
the
1
provision
of
property
or
information
under
this
section
is
not
2
invalid
in
consequence
of
a
misapplication
by
the
fiduciary.
A
3
transaction,
and
a
lien
created
by
a
transaction,
entered
into
4
by
the
fiduciary
and
a
person
acting
in
reliance
upon
a
request
5
under
this
section
is
enforceable
against
the
assets
for
which
6
the
fiduciary
has
responsibility.
7
4.
If
a
person
refuses
to
provide
the
requested
property
8
or
information
within
ten
business
days
after
receiving
a
9
request
under
this
section,
the
fiduciary
may
bring
an
action
10
to
recover
the
property
or
information
or
compel
its
delivery
11
against
the
person
to
whom
the
fiduciary
presented
the
written
12
request.
An
action
brought
under
this
section
must
be
brought
13
within
one
year
after
the
date
of
the
act
or
failure
to
act.
14
If
the
court
finds
that
the
person
acted
unreasonably
in
15
failing
to
deliver
the
property
or
information
as
requested
16
in
the
written
request,
the
court
may
award
any
or
all
of
the
17
following
to
the
fiduciary:
18
a.
Damages
sustained
by
the
decedent’s
or
ward’s
estate.
19
b.
Costs
of
the
action.
20
c.
A
penalty
in
an
amount
determined
by
the
court,
but
21
not
less
than
five
hundred
dollars
or
more
than
ten
thousand
22
dollars.
23
d.
Reasonable
attorney
fees,
as
determined
by
the
court,
24
based
on
the
value
of
the
time
reasonably
expended
by
the
25
attorney
and
not
by
the
amount
of
the
recovery
on
behalf
of
the
26
fiduciary.
27
5.
This
section
does
not
limit
or
change
the
right
of
28
beneficiaries,
heirs,
or
creditors
to
estate
property
to
which
29
they
are
otherwise
entitled.
30
DIVISION
V
31
ELECTIVE
SHARE
OF
SURVIVING
SPOUSE
32
Sec.
6.
Section
633.238,
Code
2015,
is
amended
to
read
as
33
follows:
34
633.238
Elective
share
of
surviving
spouse.
35
-7-
LSB
1061SC
(11)
86
jh/rj
7/
12
S.F.
_____
1.
The
elective
share
of
the
surviving
spouse
shall
be
1
limited
to
all
of
the
following:
2
a.
One-third
in
value
of
all
the
legal
or
equitable
estates
3
in
real
property
possessed
by
the
decedent
at
any
time
during
4
the
marriage
which
have
not
been
sold
on
execution
or
other
5
judicial
sale,
and
to
which
the
surviving
spouse
has
made
no
6
express
written
relinquishment
of
right
,
including
but
not
7
limited
to
any
relinquishments
of
rights
described
in
paragraph
8
“d”
.
9
b.
All
personal
property
that,
at
the
time
of
death,
was
in
10
the
hands
of
the
decedent
as
the
head
of
a
family,
exempt
from
11
execution.
12
c.
One-third
of
all
personal
property
of
the
decedent
that
13
is
not
necessary
for
the
payment
of
debts
and
charges.
14
d.
(1)
One-third
in
value
of
the
property
held
in
trust
15
not
necessary
for
the
payment
of
debts
and
charges
over
which
16
the
decedent
was
a
grantor
settlor
and
retained
at
the
time
of
17
death
the
power
to
alter,
amend,
or
revoke
the
trust,
or
over
18
which
the
decedent
waived
or
rescinded
any
such
power
within
19
one
year
of
the
date
of
death,
and
to
which
the
surviving
20
spouse
has
not
made
any
express
written
relinquishment
in
21
compliance
with
subparagraph
(2)
.
22
(2)
The
elective
share
of
the
surviving
spouse
shall
not
23
include
the
value
of
the
property
held
in
a
trust
described
in
24
subparagraph
(1),
if
both
of
the
following
are
true:
25
(a)
The
decedent
created
the
trust
after
the
date
of
26
decedent’s
marriage
to
the
surviving
spouse.
27
(b)
Every
transfer
of
property
into
the
trust,
except
28
for
tangible
personal
property,
included
a
written
statement
29
which
complied
with
this
subparagraph
division.
The
written
30
statement
shall
be
in
boldface
type
of
a
minimum
size
of
ten
31
points,
signed
and
dated
by
the
surviving
spouse
with
a
valid
32
notarial
acknowledgment,
and
in
substantially
the
following
33
form:
34
By
signing
below,
I
acknowledge
that
I
am
giving
up
all
35
-8-
LSB
1061SC
(11)
86
jh/rj
8/
12
S.F.
_____
rights
to
enjoyment
of
the
property
described
above,
regardless
1
of
whether
or
not
I
survive
my
spouse
and
regardless
of
any
2
rights
Iowa
law
otherwise
gives
to
me
with
respect
to
such
3
property.
I
am
specifically
waiving
my
elective
share
in
the
4
property
described
in
this
waiver.
5
This
waiver
shall
apply
regardless
of
any
changes
made
to
the
6
trust
in
the
future,
including
any
change
to
the
beneficiaries
7
of
the
trust.
8
2.
When
a
settlor
of
a
revocable
trust
transfers
real
9
property
to
the
trustee
of
the
revocable
trust
and
the
10
settlor’s
spouse
signs
a
conveyance
of
the
real
property
to
11
such
trustee
which
includes
a
general
waiver
of
rights
of
12
dower,
homestead,
and
distributive
share,
the
spouse
is
only
13
relinquishing
the
right
to
that
real
property
and
its
value
14
under
subsection
1,
paragraph
“a”
,
for
the
purpose
of
conveying
15
marketable
title
to
a
subsequent
purchaser
from
the
trustee
16
and
is
not
relinquishing
the
right
to
the
value
of
the
real
17
estate
under
subsection
1,
paragraph
“d”
,
unless
the
spouse
18
specifically
states
in
writing
an
intent
to
relinquish
the
19
right
to
the
value
of
the
real
estate
under
subsection
1,
20
paragraph
“d”
.
The
relinquishment
of
right
under
subsection
21
1,
paragraph
“a”
shall
not
prevent
the
surviving
spouse
from
22
electing
one-third
in
value
of
such
real
property
under
23
subsection
1,
paragraph
“d”
.
24
2.
3.
The
elective
share
described
in
this
section
shall
25
be
in
lieu
of
any
property
the
spouse
would
otherwise
receive
26
under
the
last
will
and
testament
of
the
decedent,
through
27
intestacy,
or
under
the
terms
of
a
revocable
trust.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
relates
to
probate
and
estate-related
laws
and
the
32
deductibility
of
administrative
expenses
on
the
Iowa
fiduciary
33
income
tax
return,
the
individual
exemptions
from
the
Iowa
34
inheritance
tax,
liability
of
beneficiaries
of
payable-on-death
35
-9-
LSB
1061SC
(11)
86
jh/rj
9/
12
S.F.
_____
accounts
or
transfer-on-death
security
accounts,
rights
of
1
fiduciaries
of
decedents
and
wards
under
the
probate
code
to
2
information
and
property,
and
the
surviving
spouse’s
elective
3
share.
4
DIVISION
I
——
FIDUCIARY
INCOME
TAX.
This
division
amends
5
the
definition
of
net
income
for
an
Iowa
fiduciary
income
tax
6
return
to
allow
administrative
expenses
not
taken
or
allowed
7
as
a
deduction
in
calculating
net
income
for
federal
fiduciary
8
income
tax
purposes
to
be
subtracted
from
adjusted
gross
income
9
when
calculating
net
income.
10
DIVISION
II
——
INHERITANCE
TAX.
This
division
amends
the
11
individual
exemptions
from
the
Iowa
inheritance
tax
to
include
12
a
decedent’s
stepchildren
and
their
lineal
descendants.
Lineal
13
descendants
include
descendants
by
adoption.
14
DIVISION
III
——
PAY-ON-DEATH
AND
TRANSFER-ON-DEATH
15
SECURITIES
ACCOUNTS.
Under
current
Code
section
524.805,
16
the
proceeds
of
a
pay-on-death
account
remain
subject
to
the
17
deceased
depositor’s
debts
and
payment
of
Iowa
inheritance
18
tax.
This
division
amends
Code
section
524.805
so
that
the
19
proceeds
remain
subject
to
the
deceased
depositor’s
estate’s
20
debts
and
charges,
including
statutory
support
allowances
to
21
the
surviving
spouse
and
children.
This
division
permits
the
22
personal
representative
of
the
deceased
depositor
to
assert
23
liability
against
the
designee
on
behalf
of
the
deceased
24
depositor’s
estate,
surviving
spouse,
child,
or
creditor.
The
25
personal
representative
must
commence
such
an
action
within
one
26
year
after
the
personal
representative’s
appointment.
This
27
division
specifies
certain
representations
that
the
personal
28
representative
must
make
in
the
petition
to
initiate
the
29
proceeding.
A
designee
against
whom
a
proceeding
is
brought
30
may
elect
to
transfer
the
funds
received
from
the
deceased
31
owner’s
account
to
the
personal
representative,
which
fully
32
discharges
the
designee
from
all
liability
under
the
section.
33
This
division
also
permits
a
designee
against
whom
a
proceeding
34
is
brought
to
join
a
designee
of
any
other
payable-on-death
35
-10-
LSB
1061SC
(11)
86
jh/rj
10/
12
S.F.
_____
account
or
beneficiary
of
any
transfer-on-death
security
1
account
of
the
deceased
depositor.
2
Under
current
Code
section
633D.8,
a
beneficiary
of
a
3
transfer-on-death
security
is
liable
to
account
to
the
personal
4
representative
of
the
deceased
owner
for
the
value
of
the
5
security
to
the
extent
necessary
to
discharge
the
deceased
6
owner’s
debts,
taxes,
and
expenses
of
administration.
Under
7
current
law,
a
proceeding
to
assert
liability
against
the
8
beneficiary
cannot
be
commenced
unless
the
deceased
owner’s
9
surviving
spouse,
child,
or
creditor
presents
a
written
10
demand
to
the
deceased
owner’s
personal
representative.
This
11
division
amends
Code
section
633D.8
to
allow
the
deceased
12
owner’s
personal
representative
to
initiate
a
proceeding
13
against
a
beneficiary
on
behalf
of
the
deceased
owner’s
estate,
14
surviving
spouse,
child
or
creditor
without
first
having
15
received
a
written
demand.
This
division
specifies
certain
16
representations
that
the
personal
representative
must
make
in
17
the
petition
to
initiate
the
proceeding.
This
division
also
18
shortens
the
statute
of
limitations
to
commence
a
proceeding
19
from
within
two
years
of
the
date
of
the
death
of
the
owner
20
to
one
year
after
the
date
of
the
appointment
of
the
personal
21
representative.
This
division
also
permits
the
beneficiary
who
22
is
subject
to
a
proceeding
under
Code
section
633D.8
to
join
23
designees
of
payable-on-death
accounts
which
the
deceased
owner
24
also
held.
25
DIVISION
IV
——
FIDUCIARY
WRITTEN
REQUESTS.
Under
current
26
law,
a
person
who
in
good
faith
pays
or
transfers
money
27
or
other
property
to
a
fiduciary,
which
the
fiduciary
is
28
authorized
to
receive,
is
not
responsible
for
the
proper
29
application
by
the
fiduciary.
This
division
amends
current
30
law
to
permit
fiduciaries
of
decedents
or
wards
to
present
31
a
written
request
to
any
person
to
obtain
property
to
which
32
the
decedent
or
ward
is
entitled
or
for
information
needed
33
to
perform
the
fiduciaries’
duties.
The
division
specifies
34
the
representations
required
to
be
in
the
request.
If
the
35
-11-
LSB
1061SC
(11)
86
jh/rj
11/
12
S.F.
_____
person
receiving
the
request
takes
reasonable
steps
to
verify
1
the
identity
of
the
fiduciary
and
has
no
knowledge
that
the
2
representations
in
the
request
are
incorrect,
the
person
who
3
provides
the
property
or
information
requested
shall
not
be
4
liable
to
any
person
for
so
acting.
The
person
who
received
5
the
request
has
10
business
days
to
provide
the
information
or
6
property.
After
10
days,
the
fiduciary
may
bring
an
action
to
7
recover
the
property
or
information
or
compel
its
delivery.
If
8
the
fiduciary
prevails
in
the
court
action,
the
court
may
also
9
award
damages
sustained
by
the
decedent’s
or
ward’s
estate,
10
costs
of
the
action,
a
penalty
determined
by
the
court
of
11
not
less
than
$500
and
not
more
than
$10,000,
and
reasonable
12
attorney
fees.
13
DIVISION
V
——
ELECTIVE
SHARE
OF
THE
SURVIVING
SPOUSE.
This
14
division
relates
to
a
surviving
spouse’s
elective
share
with
15
regard
to
the
value
of
property
held
in
the
deceased
spouse’s
16
revocable
trust.
Under
current
law,
the
surviving
spouse
may
17
waive
the
surviving
spouse’s
right
to
include
the
value
of
18
property
held
in
the
deceased
spouse’s
revocable
trust
with
19
an
express
written
relinquishment.
This
division
specifies
20
the
form
of
the
express
written
relinquishment
and
adds
new
21
requirements
that
the
deceased
owner’s
revocable
trust
be
22
created
after
the
date
of
the
marriage
between
the
deceased
23
owner
and
the
surviving
spouse
and
that
every
transfer
of
24
property
must
include
an
express
written
relinquishment.
This
25
division
also
states
when
a
settlor
of
a
revocable
trust
26
transfers
real
property
to
the
trustee
of
the
revocable
trust
27
and
the
settlor’s
spouse
executes
a
conveyance
which
includes
a
28
waiver
of
rights
of
dower,
homestead,
and
distributive
share,
29
the
spouse
does
not
waive
the
right
to
include
the
value
of
30
the
real
property
in
the
elective
share
unless
the
spouse
also
31
specifically
states
an
intent
to
do
so
in
writing.
32
-12-
LSB
1061SC
(11)
86
jh/rj
12/
12
